Construction firm files suit against LAX for nonpayment related to new international terminal

Los Angeles International Airport may have engaged in a pattern of not paying its bills on the new $2 billion Tom Bradley International Airport, according to a lawsuit brought by the contractor that built the facility.

In the suit filed last month, construction joint venture Walsh/Austin claims that the airport failed to properly pay more than $2.4 million to an electrical subcontractor. The subcontractor — Fullerton-based electrical firm SASCO — says it was given inaccurate design documents that made it impossible for the company to carry out the work at the agreed-upon rate. Through Walsh/Austin, the company asked for extra money twice for the required extra work and was turned down each time, according to the complaint.

The city provided “... electrical design documents that were inaccurate and replete with errors, conflicts and other defects,” the suit states. It also engaged in a practice of “... hindering, interfering with and disrupting the performance of Walsh/Austin and SASCO in performing electrical work on the project.”

In both the lawsuit and an attachment to it, lawyers for Walsh/Austin suggest there will eventually be considerable litigation relating to the nonpayment of bills on the fancy international terminal. It cites other lawsuits brought by an Orange County plastering firm and a Buena Park door company and suggests that, eventually, all the litigation tied to nonpayment at LAX will end up in the same courtroom.

“Three subcontractors have already filed lawsuits against Walsh/Austin and the city in connection with alleged changes and delays during the project, and many more lawsuits of a similar nature are expected,” reads an attachment to the SASCO suit.

Walsh/Austin also suggests it might soon file lawsuits similar to the SASCO action. Its contract with Los Angeles requires it to first file an administrative claim with the city —the SASCO claim was turned down — before it can file suit.

The construction firm says it has “other claims” going through that administrative process that could eventually turn into lawsuits.

“Walsh/Austin and SASCO have other change order requests against and claims against the city arising from performance of the project that are not included in this action,” the suit states.

Nancy Castles, a spokeswoman for Los Angeles World Airports, said the agency does not comment on pending litigation.

The airy new terminal — the key part of the most expansive public works project in the history of Los Angeles —has mostly received rave reviews from travelers, especially for its dining and shopping choices. Food options include 800 Degrees Pizza, Border Grill and Chaya Brasserie while stories include Michael Kors, Porsche Design, Tumi and Victoria’s Secret.